¶ 1. Plaintiff appeals from a superior court order granting summary judgment to defendant Michael Cline on plaintiffs claims that he is not personally liable to her for acts of discrimination and retaliation under the Vermont Fair Employment Practices Act (VFEPA) and the Workers’ Compensation
I. Background
¶ 2. Plaintiff originally sued her former employer, US Airways, M. Cline, her former supervisor at US Airways, and several former coworkers for: sexual harassment and discrimination against a person with a disability under the VFEPA, discrimination for filing a complaint under the VFEPA, discrimination for filing a workers’ compensation claim, and several other claims. After US Airways filed for bankruptcy, which placed an automatic stay on her action, plaintiff settled with US Airways so that she could proceed with her claims against the individual defendants. Plaintiff eventually dropped her former coworkers as defendants and, consequently, the sole remaining defendant in this action is her former supervisor, whom plaintiff now seeks to hold liable under the VFEPA and the WCA.
¶ 3. When reviewing a grant of summary judgment, we use the same standard as the trial court.
Savage v. Walker,
¶ 4. The events giving rise to this lawsuit began in the spring of 1999, when, during her employment with US Airways, plaintiff suffered a work-related back injury. After learning of her injury, plaintiffs supervisor did not observe WCA mandates when he failed to promptly investigate her complaint to determine whether compensation was due, forced her to use sick leave as compensation for the work days she missed while recovering from the back injury, interfered with her course of treatment, and then, after she requested WCA benefits, told her she could not receive any compensation retroactively. According to the record, supervisor did not allow plaintiff workers’ compensation for missed work until she filed a claim with the Department of Labor, complaining of US Airways’ failure to compensate her through the WCA system.
¶ 5. When plaintiff returned to work in June 1999, she was on a limited work schedule to accommodate her recovery. Supervisor interfered with plaintiff’s medical treatment by calling her physical therapist to request that the therapist approve longer work hours. Additionally, supervisor began to have individual meetings with plaintiff to criticize her performance, to take away some of her supervisory duties, and to consult about her — as he had not before — with the employees she was supposed to supervise. Prior to these actions, plaintiff and supervisor maintained a problem-free work relationship, and plaintiff’s employment record, covering about ten years with US Airways, reflected only positive evaluations of her work. In July 1999, plaintiff complained directly to US Airways about supervisor’s treatment of her. About a month after her written complaint to the company, when she felt that the company was not responding appropriately, she filed a complaint for workplace discrimination against US Airways with the Vermont Attorney General.
II. Individual Liability under the Vermont Fair Employment Practices Act
¶ 7. Plaintiffs amended complaint states VFEPA claims against supervisor for: sexual harassment, 21 V.S.A. §§ 495(a)(1), 495d(13), discrimination for lodging complaints against US Airways with the Vermont Attorney General’s Office and with the Vermont Department of Labor and Industry, id. § 495(a)(5), and discrimination for being perceived to suffer from a handicap, id. § 495(a)(1). Supervisor’s motion for summary judgment on these claims argued first, that there is no provision for individual liability under the VFEPA and second, that plaintiff failed to make a prima facie showing of sexual harassment or discrimination based on disability or handicap. The superior court granted summary judgment for supervisor based on its determination that there is no individual liability under the VFEPA. 1
¶ 8. The VFEPA prohibits “any employer, employment agency, or labor organization” from engaging in a range of discriminatory acts and practices. Id. § 495(a). The term “employer” refers to “any individual, organization, or governmental body . . . whether domestic or foreign . . . and any agent of such employer, which has one or more individuals performing services for it within this state.” Id. § 495d(l) (emphasis added). Plaintiff argues that the term “any agent of such employer” extends liability to employees, as individuals, who engage in discriminatory actions forbidden by the VFEPA.
¶ 9. This Court has yet to construe the term “any agent” in the context
¶ 10. Our construction of the VFEPA, which is patterned on Title VII of the federal Civil Rights Act protecting against employment discrimination based on race, color, religion, sex, or national origin, is often guided by the federal courts’ interpretations of Title VII.
Lavalley v. E.B. & A.C. Whiting Co.,
¶ 11. While our past decisions demonstrate that we may depart from federal interpretations of Title VII when we construe our own fair employment practices law, it is important to explain why the federal analysis is particularly unpersuasive in this case. The definition of “employer” in the federal FEPA of Title VII is, in pertinent part:
a person engaged in an industry affecting commerce . . . , and any agent of such a person . . . , except that. . . persons having fewer than twenty-five employees (and their agents) shall not be considered employers.
42 U.S.C. § 2000e(b). In holding that this definition connotes only vicarious liability for employers, and not individual liability for their agents, federal courts have relied on two main rationales. The first is that the federal definition expressly excludes small businesses from liability by excluding any employer who employs fewer than twenty-five people. For example, the Fourth Circuit reasoned that “it would be incongruous to hold that Title VII does not apply to the owner of a five-person company but applies -with full force to a person who supervises an identical number of employees in a larger company.”
Lissau,
¶ 12. This logic cannot apply to the VFEPA. Vermont’s law contains no small-business exclusion. In fact, the definition of “employer” in the VFEPA expressly includes any employer who has but a single employee within the state. Moreover, Vermont’s definition of employer includes “any agent” of such employer, regardless of size.
¶ 13. The other rationale relied on by the federal courts for excluding individual liability under Title VII relates to the enforcement provisions in that statute. 42 U.S.C. § 2000e-5. Originally, relief included only “back pay and equitable relief such as reinstatement,” which are remedies available only from an actual employer, not from a mere supervisor or fellow employee.
Lissau,
¶ 14. The VFEPA does not similarly limit its remedies to relief typically available just from employers rather than individuals working for the same company. The VFEPA originally contained a single penalty provision stating that any employer “who willfully violates any of the provisions of this act, shall be fined not more than $500.00 for each violation.” 1963, No. 196, § 3. In 1976, the Legislature amended the penalty section generally, and recodified it as 21 V.S.A. §495b. 1975, No. 198 (Adj. Sess.), §2. The new provision allowed the Attorney General or state’s attorneys to enforce the act “by restraining prohibited acts, seeking civil penalties, obtaining assurances of discontinuance and conducting civil investigations in accordance with the procedures established in [the Consumer Fraud Act] as though an unlawful employment practice were an unfair act in commerce.” Id. It also provided that the superior courts could impose the same civil penalties and costs, and any other relief for the State or injured employee, as they could under the penalty provisions of the Consumer Fraud Act. Id. Finally, the 1976 amendment to the VFEPA provided that the superior courts could “order restitution of wages or other benefits . . . and may order reinstatement and other appropriate relief on behalf of an employee.” These changes provided that the penalties could go toward making the injured employees whole, instead of merely punishing the employers. Further, it is apparent from these amendments that the Legislature intended that employers could be forced to stop discriminatory practices and incur liabilities substantially greater than a $500 fine.
¶ 15. The 1976 amendments retained remedies usually imposed on traditional employers in control of payroll and hiring, rather than coemployees or supervisors who might not enjoy such powers, but later changes — many of which occurred before the 1993 addition of the term “any agent” to the VFEPA definition of employer — evinced an even more definite expansion of the remedial scheme. The Legislature amended the penalty and enforcement provisions again in 1981 — twelve years prior to the “any agent” amendment — adding subsection (b), which allows a private right of action by injured employees against an employer who violates the VFEPA. In this subsection, any “person aggrieved by a violation” may seek “damages or equitable relief, including restraint of prohibited acts, restitution of wages or other benefits, reinstatement, costs, reasonable attorney’s fees and other appropriate relief.” 1981, No. 65, §2. In 1999, the Legislature specified that the damages available under the private right of action included “compensatory and punitive.” 1999, No. 19, § 5. 21 V.S.A. § 495b(b). Any one of those remedies can be extracted from an individual
¶ 16. Reference to the penalty provisions for federal Title VII violations as interpretive support for the conclusion that Title VII allows for only respondeat superior liability does not transfer with equal force to the VFEPA context. Comparison of the VFEPA penalty provisions and the federal penalty provisions illustrates that the VFEPA never existed in a form where a private right of action could be remedied by solely equitable remedies, which an employer, but not a supervisor, would be in a position to provide. Further, the VFEPA does not tie the size of the possible damages award to the size of the employer, and there is no restriction on the damages available — such as limiting the equitable remedy to back pay — that suggests the Legislature intended that employers alone would be liable for VFEPA violations. Consequently, the rationales of the federal courts provide no basis for interpreting the VFEPA to mean that employees cannot be held liable as individuals.
¶ 17. Decisions by other state courts construing their own Title VTI-patterned state statutes can also inform our construction of the VFEPA.
Lavalley,
¶ 18. We are not convinced by the five state-court decisions that preclude individual liability. Two of the courts, Florida and Texas, give virtually no reason for their decisions. The California, Idaho, and Tennessee courts cite the consensus of the federal courts regarding individual liability for agents under the federal FEPA as one of the main reasons for rejecting individual liability under their state workplace discrimination statutes.
Reno,
¶ 19. The California and Tennessee courts adopted an additional approach to the individual liability issue, which is to rely on the general rule that agents are not typically held “individually liable for acts undertaken on behalf of a disclosed principal that are within the legitimate scope of the delegated management authority.”
Carr,
¶20. Assuming, without deciding, that we were to apply the Restatement § 6.01(2) rule to limit the situations where employees could be individually liable under the VFEPA, § 6.01(2) does not apply to the many situations where an employee might be acting
outside the scope of legitimate management authority. In these situations, existing case law establishes that employers are not insulated from liability under Title VII. The United States Supreme Court has unequivocally concluded that Title VII makes employers vicariously liable for many discriminatory and harassing acts of their employees that are outside the scope of employment.
Ellerth, 524
U.S. at 758 (holding that employers are liable when the employee unlawfully discriminates beyond the scope of his or her employment, but “‘was
¶ 21. Turning to state court decisions that adopt employee liability, we find two categories of reasoning in support of our conclusion regarding individual liability under the VFEPA. First, courts have noted, as we have, that the statutory language “by its very terms, encompasses individual supervisors and managers whose conduct violates the provisions of [the nondiscrimination statute].”
Genaro,
III. Individual Liability under the Workers’ Compensation Act
¶22. The second issue on appeal is whether the Workers’ Compensation Act allows employees to be sued as individuals for discriminating against another employee who has asserted a claim for workers’ compensation benefits. Although supervisor moved for summary judgment on the basis that plaintiff failed to establish a prima facie case of discrimination under
¶ 23. Under the WCA, “[n]o person shall discharge or discriminate against an employee . . . because such employee asserted a claim for benefits.” 21 V.S.A. § 710(b). We decided in
Murray v. St Michael’s College,
¶ 24. As we have already stated, the starting point for statutory interpretation is to give effect to legislative intent. We first look to the language of the statute and seek to construe it according to its plain and ordinary meaning.
State v. LeBlanc,
¶25. The superior court, in reaching the opposite conclusion, stated that “[i]f the Legislature wanted to create a private right of action against supervisors, it could easily have done so clearly and directly.” It is not apparent, however, why the Legislature need be more clear than to use the term “person” in its most plain and all-encompassing sense. This legislative language choice straightforwardly applies the nondiscrimination provision to coworkers as well as to employers. As plaintiff points out, the Legislature used the term “employer” throughout the WCA to specify liability and responsibilities of employers for work-related injuries. Its decision to use the term “person” in § 710(b) instead of “employer” marks a clear departure from its approach to employer-only liability in the rest of the WCA. Rather than ignore this distinction and assume the Legislature meant what it did not say, we will interpret the statute according to its plain meaning.
¶26. Supervisor argues that it undermines the overall structure and purpose of
¶ 27. Supervisor cites case law from Texas, Illinois, and Kansas in support of construing Vermont’s WCA to exclude employees from personal liability for violating the antidiscrimination clauses of the Act. However, those cases rely on reasoning we have already rejected as inapposite or unpersuasive. Particularly unconvincing is a Texas court’s overly stingy reading of the term “person” to exclude
“any
person.”
Stewart v. Littlefield,
¶ 28. Supervisor next directs us to some courts that have limited potential defendants in common-law retaliatory-discharge suits to employers alone. The basis for this limit is that “only the employer . . . has a ‘motive’ to fire an employee for seeking
workers’ compensation benefits.”
Buckner v. Atl. Plant Maint., Inc.,
Reversed and remanded for further proceedings not inconsistent with this opinion.
Notes
Defendant argues that we can affirm the superior court’s decision based on the lack of a prima facie case for discrimination. We do not take the court’s aside that it was “mindful that Plaintiff has not alleged acts of unwanted sexual conduct by [defendant] and claims that she is not capable of performing the essential functions of her job” as a ruling on whether plaintiff made a prima facie case under the VFEPA. Further, we note that plaintiff’s amended complaint relied on at least one provision of the VFEPA under which defendant did not argue that plaintiff failed to state a prima facie case. While we sometimes choose to reach issues that were not decided by the trial court, see
Towns v. N. Sec. Ins. Co.,
Additionally, in a case where the issue was not raised, we allowed a suit for sex discrimination under the VFEPA to proceed against a supervisory employee as an individual.
Graff v. Eaton,
As of this writing, the United States Court of Appeals for the First Circuit has not considered the issue.
The cases holding that state antidiscrimination statutes allow employees to be held individually liable are
Wallace v. Skadden, Arps, Slate, Meagher & Flom,
While the Tennessee Supreme Court decision cites the Restatement (Second) of Torts, it is plainly referring to the rale expressed by the Restatement (Second) of Agency § 320. Restatement (Second) of Agency § 320 (1958) (“Unless otherwise agreed, a person making or purporting to make a contract with another as agent for a disclosed principal does not become a party to the contract.”).
Where the statutory definition' of “employer” does not use the term “agent,” but instead uses a phrase such as “any person acting directly or indirectly in the interest of an employer,” state courts have reasoned that this language is “much broader in scope than that employed by the analogous Title VII provision.”
Genaro,
As with the VFEPA claims, defendant urges us to affirm the trial court’s order on a separate ground, namely, that plaintiff failed to make a prima facie case for discrimination under the WCA. Again, acknowledging we have the discretion to address issues not decided by the trial court,
Tovms,
We acknowledge receipt of plaintiffs supplemental citation to a transcript purportedly relevant to the statute’s underlying legislative history, but note that we did not consult or rely on this material in any respect in reaching our decision.
